There has been a lot of talk about the horsepower Apple has packed into the new iPad 2. It’s running the new dual-core A5 chip and is showing graphic rendering speeds of up to 9 times faster than the original iPad.

Benchmark testers have already proven that the iPad 2 is nearly twice as fast as its competitors, even the ones that have dual processors themselves. But just how powerful is Apple’s latest tablet?

iOS game developer Firemint is determined to find out. TouchArcade is showing a video of a beta version of Firemint’s Real Racing 2 HD for the iPad 2. While I’ve seen video out from an iPad many times before, I’ve never seen it look this good.

The new HDMI cable Apple released with the iPad 2 translates game play from your iPad to the big screen effortlessly. It will play in full 1080p on any compatible HDTV, with no black borders or scaling.

Since you will be watching the gameplay on your big TV, Firemint didn’t want the screen on your iPad to go to waste. While you twist and turn your iPad to steer your race car, glance down at it every so often to see a map and race statistics.

I’m excited to see what app makers continue to come up with for the iPad 2. Its power obviously leaves more room for innovation by developers. I’d like to see game play move over to AirPlay and ditch the HDMI cable al together, but that’s just me.

Does anyone play any games using the video out feature? Tell us below!